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				You Asked for It! » Barking up the wrong tree   2003-10-01 09:29 Alex Robson Not that I care about macroeconomic aggregates much, but what a great scheme to increase national savings! Individuals start out by saving a dollar, which increases household savings by a dollar. But then the government taxes someone else a dollar to match the original contribution, thereby reducing national savings by at least a dollar (more than a dollar once the costs of taxation are taken into account). Net effect on national savings: zero at best, and almost surely negative in practice. They really have some economic geniuses over there in the ALP. Barking up the wrong tree -- 24601 2003-10-01